World Bank says global economy will shrink in ’09 Posted on March 10, 2009March 12, 2009 by Your Financial FactSheet Jamaica Gleaner: “World Bank says global economy will shrink in ’09” The World Bank said Sunday that the global economy will shrink this year for the first time since World War II and that the global financial crisis will make it tougher for poor and developing nations to access needed financing. Jamaica Observer: “Government must prepare the nation for economic survival” The government must prepare the people for the shocks of the coming national budget and do it early. It has no control over the global economic crisis which will impact heavily on the budget – neither did the PNP Opposition when it formed the government – but government has a responsibility to do everything possible to cushion the intensity of the impact. BusinessWeek, Bovino: “The Economy: A Scorecard for the Global Slowdown” One year ago, it seemed pretty clear to Standard & Poor’s Ratings Services that the U.S. was in a recession. That has been confirmed by the National Bureau of Economic Research, which has said that the U.S. recession began in December 2007.
Investors flee unit trusts…Managers say hold strain Posted on March 4, 2009March 5, 2009 by Your Financial FactSheet Jamaica Gleaner: Investors flee unit trusts Jamaican investors pulled an estimated $5 billion, or around 30 per cent of their capital, out of unit trusts last year – and the trend seems set to continue, even as managers of the mutuals insist they remain good investment vehicles for people not in a hurry to realise returns. Jamaica Observer: “Dangers Facing CARICOM” BRIDGETOWN, Barbados – Since state intervention in Trinidad and Tobago against CLICO and its financial groups to protect investors and policy holders, three other Caribbean Community (Caricom) governments have successfully moved to the courts to place this giant regional conglomerate under judicial orders in the management of its assets and funds. Clifford, CNNMoney.com: “U.S. Recession to end in within 2 years – survey” Independent financial advisors see a light – however dim – at the end of the current recession tunnel, according to a new survey. In an online study conducted for Charles Schwab, 85% of advisors believe the downturn will end within the next two years. Fifteen percent see it going longer.
World markets drop on Bernanke bank warning Posted on March 3, 2009March 4, 2009 by Your Financial FactSheet LONDON (AP) World stock markets turned lower Tuesday after U.S. Federal Reserve chairman Ben Bernanke warned that U.S. banks may need more cash injections from the government, above the $700 billion already agreed, to stay afloat. “Whether further funds will be needed depends on the results of the current supervisory assessment of banks, the evolution of the economy and other factors,” Bernanke said.
U.S. Economy Plummets Posted on February 27, 2009February 28, 2009 by Your Financial FactSheet Mutikani, Washington (Reuters) The U.S. economy suffered its deepest contraction since early 1982 in the fourth quarter, shrinking at a much worse-than-expected 6.2 percent annual rate as exports plunged and consumers slashed spending.